China's small and medium-sized enterprises are divided into three types: medium-sized, small and micro, but there were relatively few references to micro-enterprises from the past.In November 2011, the Ministry of Industry and Information Technology, the National Bureau of Statistics, the Development and Reform Commission, and the Ministry of Finance researched and formulated the "Provisions on the Standard Regulations for the Classification of Small and Medium-sized Enterprises", with the specific standards based on the enterprise's employees, operating revenues, Total assets and other indicators, combined with the characteristics of the industry. The enterprises involved include agriculture, forestry, animal husbandry and fishery, industry (including mining, manufacturing, electricity, heat, gas and water production and supply), construction, wholesale, retail, transportation (excluding railroad transportation), warehousing, postal services, accommodation, catering, information transmission (including telecommunications, Internet and related services), software and information technology services, real estate development, property management, leasing and business services. property management, leasing and business services, and other industries not listed (including scientific research and technical services, water conservancy, environment and public **** facilities management, residential services, repair and other services, social work, culture, sports and recreation, etc.). And for each of the above industries to develop different division standards. For example, in the case of industrial enterprises, microenterprises are those with less than 20 employees or with an annual business income of less than 3 million yuan, while in most of the other industries, less than 10 employees are considered microenterprises. This standard subdivision, not only conducive to the classification of small and medium-sized enterprises statistical management, but also make China's enterprise standards for the type of more complete, with the world's major countries on the definition of micro-enterprises are generally consistent.

Two, the status of small and micro enterprises in the national economy

In China, the non-public economy accounts for more than 50% of the GDP, and is an important force in China's reform and opening up and socialist modernization, and small and micro enterprises, as a major part of the non-public economy, play an important role in safeguarding employment and improving people's livelihood as well as maintaining social stability. However, at the same time, small and micro enterprises are the disadvantaged groups among the enterprise groups, because their own capital is relatively small, the operation is more difficult, and due to some of their own characteristics, they have encountered a lot of difficulties and obstacles in their development, such as changes in domestic and foreign market environment, slowing down of the economic growth rate; increase in the cost of enterprise labor, especially the labor cost; the cost of raw materials is rising; the land of enterprises is relatively tight; the RMB exchange rate is increasing; the pressure of energy saving and emission reduction. The exchange rate of RMB has increased; the pressure of energy saving and emission reduction is relatively large, and so on. Many of these problems have to rely on capital to solve, so the shortage of capital will seriously constrain the development of small and medium-sized enterprises, if not timely resolution of these small and micro-enterprises in business difficulties, will likely affect the healthy development of the national economy.

Three, the reasons for the financing difficulties of small and micro enterprises

In 2011, the Guangdong Provincial Economic and Information Commission had a sample of 200 small and medium-sized industrial enterprises questionnaire survey showed that in the "rising prices of raw materials", "appreciation of the RMB", "Rising labor costs", "financing difficulties" in the four major problems inherent in small and medium-sized enterprises, "financing difficulties" has once again become the top of the small and micro-enterprises in the problem. The main reasons for the difficulty of financing small and micro enterprises are as follows.

(A) a single financing channel

Small and micro-enterprise financing channels are mainly two: one is the endogenous financing, including the owner's own funds, borrowed funds from friends and relatives, venture capital and business after the business of the accumulated funds and other sources. The second is exogenous financing, which can be divided into two forms: indirect financing refers to the financing intermediated by banks, credit unions and other financial institutions, including a variety of short-term loans, medium- and long-term loans, etc.; direct financing refers to the form of stocks and bonds to publicly raise funds from the community, as well as through the leasing company to handle the financial leasing of the financing of the way to finance the funds. However, the financing of most MSMEs is still banks and microfinance companies, and other financing methods such as joint ventures and investments are underutilized. The amount through direct financing channels is extremely small, accounting for only 1.8%. The current microfinance companies because of the relatively small number of institutions, coupled with the inability to absorb deposits, most of its loan funds for the capital, in the face of the huge financing needs of small and microenterprises, it is really a drop in the bucket, difficult to cope with.

(ii) Higher financing costs

Commercial banks, taking into account the risk factor, the interest rate on loans to micro and small enterprises will generally rise accordingly, together with the registration fee, appraisal fee, notary fee, guarantee fee, etc., the total cost of financing for micro and small enterprises than the cost of loans for large and medium-sized advantageous enterprises is one to several times higher. This means that the profit margin of an enterprise's capital must be at least higher than the cost of capital in order not to lose money. Many MSMEs are in financial difficulties because their profits are not enough to cover their interest expenses. In the Yangtze River Delta region, some small and micro-enterprises even use private lending as their main source of funds, but ultimately the enterprise is difficult to sustain. 2011 Wenzhou private lending crisis triggered by the financing of small enterprises and micro-enterprises has attracted the attention of many parties.

(3) Small and medium-sized enterprises receive little bank credit support

Currently, the scale of small and micro-enterprise loans accounts for only about 10% of the total bank credit, the country's township and village enterprises, individual private enterprises, "three capitals" of short-term loans accounted for only 14.4% of the short-term loans of the bank. This is disproportionate to the fact that the value of final products and services created by small and microenterprises accounts for 58% of GDP, the commodities they produce account for 59% of social sales, and the tax revenues they pay account for 50.2% of GDP. However, banks, as profit-making institutions, have to make mortgage loans, micro and small enterprises do not have full-value assets collateral; to make guaranteed loans, no guarantee institutions are willing to guarantee for micro and small enterprises; to make credit loans, micro and small enterprises have the problem of low credit. Coupled with the constraints of the national investment-oriented policies, micro and small enterprises in line with the national credit policy to support the industry is not much, so the commercial banks in the face of such a "three no" customers will often take into account the risk of principal recovery and ultimately choose to give up.

Four, the solution to the financing difficulties of small and micro enterprises

First, expand the financing channels of small and micro enterprises. Get rid of the passive situation of small and micro enterprises long-term reliance on external funds, especially bank credit funds, by strengthening their own management, especially financial management and corporate credit and other aspects of the enterprise's own development of long-term planning. Such as inventory and accounts receivable within the enterprise, bill discounting, leasing or selling idle assets to achieve structural optimization. At the same time, the enterprise can also raise funds through its internal enterprise, such as raising the personal deposits of employees. Employees with their personal deposits into the business operations, so that employees become the master of the enterprise, one can mobilize the enthusiasm of the staff to work, improve staff efficiency. On the other hand, it can help the enterprise to effectively manage its employees and raise funds.

On the other hand, equity can be used to raise funds. For example, through the Shenzhen Stock Exchange specially set up for small and medium-sized companies to gather plate - small and medium-sized plate, for listing. If small and medium-sized enterprises can not meet the listing threshold, can raise funds through financial leasing, such as leveraged leasing or sale and leaseback, so that small and medium-sized enterprises in the case of their own accumulation rate is relatively low not only the same can be updated with advanced equipment, but also can be their own limited funds for other purposes, which is conducive to the enterprise to improve the utilization rate of their own funds. At the same time, the use of financial leasing for financing, less restrictive conditions, procedures are simple and easy to carry out, so that the poor liquidity of the physical assets into the most liquid cash assets for use, the ability to realize a significant increase. Developed countries such as the United States and Germany, as well as developing countries such as Brazil and South Korea, have made good use of financial leasing as a means of solving the development problems of SMEs. There are some other ways, such as the issuance of special financial bonds for small business loans.

Second, reduce the financing cost of small and micro enterprises. Due to the role of financial leverage, in the same scale of debt conditions, the higher the interest rate of debt, the more interest cost expenses borne by the enterprise, and the possibility of the danger of corporate bankruptcy also increased. Foreign small business loans compared to larger enterprises, the interest rate difference of 1.5 percentage points to 2 percentage points, while our country is about 6 percentage points to 8 percentage points higher, the government can provide loans for small and micro-enterprises through the financial institutions, interest subsidies and tax breaks to solve part of the problem.

Third, the establishment of a unified and efficient small and micro-enterprise management agencies and financial institutions, and to strengthen and improve their macro-management. Some developed countries have perfect management organizations, for the healthy development of small and micro-enterprises to create a good external macro-environment. For example, Japan has set up the Small and Medium Enterprises Agency in the Ministry of International Trade and Industry; the United States has set up a permanent federal agency, the Small Business Administration; and the Department of Trade and Industry of the United Kingdom has a Small Business Service. The actual situation in China at present is that enterprises belong to the authorities at all levels of government and in all industries, and management is relatively decentralized. It is possible to divest and merge the relevant departments currently involved in the management functions of small and medium-sized enterprises, and to form an authoritative organization with comprehensive coordination capabilities.

In addition, it is necessary to establish financial institutions specializing in serving small and medium-sized enterprises, and to arrange a certain proportion of funds for the financing of small and medium-sized enterprises. Due to the high operating costs of large banks, in order to improve efficiency and save costs, non-state-owned small and medium-sized financial institutions can be developed to provide a full range of financial services for the development of small and micro-enterprises. Taking into account the reality in China, since the establishment of microfinance companies cannot meet all the financial needs of micro and small enterprises, coupled with inherent shortcomings such as insufficient capital, a specialized credit department for micro and small enterprises can be set up in existing financial institutions, or the credit investment of some regional banks can be adjusted to provide prominent support for key small and micro enterprises at the local level. These have now been realized in many banks. For example, Agricultural Bank of China, from January to October 2011, the balance of loans to small and micro-enterprises increased by more than 94 billion yuan, an increase of 20.42%, and the growth rate of loans to small and micro-enterprises was higher than the growth rate of all loans of the bank by 9.17 percentage points, and higher than the growth rate of loans to all corporate customers of the bank by 12.68 percentage points. The Beijing branch of Baoshang Bank has set up a specialized credit department to provide credit support for individual businessmen and small and micro enterprises in Beijing's Dahongmen Garment Wholesale Market.

Fourth, a credit rating system and credit guarantee system for small and medium-sized enterprises should be established nationwide as soon as possible. Information asymmetry is the most important factor that makes it difficult for financial institutions to effectively control loans to small and micro-enterprises. At present, the credit rating of small and medium-sized enterprises is mainly carried out by the rating agencies of banks, but the rating standards of various banks are not consistent, and the society is even more lacking in authoritative enterprise credit rating agencies. The relevant government departments to create a good environment for enterprises and banks, it is necessary to start from the laws and regulations, standardize the social credit procedures, as soon as possible to establish a unified, social and authoritative small and micro-enterprise credit rating system, which strengthens and guides the small and micro-enterprises on the importance of credit rating to promote the small and micro-enterprises to improve the level of management and the degree of credit.

On the other hand, since the financing difficulties of small and micro-enterprises are to a large extent due to their high credit risk, the government should be committed to establishing and improving the credit guarantee mechanism and system for small and micro-enterprises to provide a strong backing for the financing of small and micro-enterprises. For example, the establishment of a credit information database for small and micro enterprises. In addition to the financial and operational information of the enterprise, the database should also include non-financial information such as taxes paid by the enterprise, social security purchases made for employees, and utility payments; the database can centralize and process the records of enterprise and individual credit and other behaviours dispersed in the industrial and commercial, tax, banking, public, prosecutorial and legal departments, etc., so as to achieve the *** enjoyment of credit information resources; the information in the database should satisfy the requirements of timeliness. Corresponding guarantee and insurance organizations should also be established to effectively control guarantee risks. Taking Fujian Province as an example, there are about 40 professional guarantee organizations in the province, such as Fujian Zhongkezhi Guarantee and Investment Company Limited, Zhonglianxin Guarantee Company Limited and Fujian Hongfa Guarantee Company Limited. At present, 30 provinces (municipalities and districts) of the country's formation of various types of credit guarantee institutions serving small and medium-sized enterprises has reached 260, **** mobilized 7.6 billion yuan of guarantee funds.

Fifth, strengthen the union between small and micro enterprises. For example, Japanese small and medium-sized enterprises in the same industry have strengthened their alliances through the establishment of business portfolios, and have cooperated in an organized manner in the areas of procurement, production, sales and distribution; medium-sized enterprises have driven the development of small and micro-enterprises, and large and medium-sized enterprises have established long-term division of labour and collaboration with small and micro-enterprises.

Sixth, combined with other policies, such as tax policies, to support the development of small and micro enterprises. in December 2011, the Ministry of Finance, the State Administration of Taxation jointly issued the "Notice on Issues Related to Preferential Policies on Income Tax for Small and Micro Enterprises", from January 1, 2012 - December 31, 2015, for the small and micro enterprises with an annual taxable income of less than 60,000 yuan (inclusive). Their income will be reduced by 50% of their taxable income, and they will pay enterprise income tax at a rate of 20%. There are also measures to raise the starting point for value-added tax and business tax for small and micro-enterprises, and to exempt them from 22 administrative fees.

In short, small and micro-enterprises to get out of the financing dilemma, not only to focus on the "strong body", strengthen their own management and development, to the market, the bold use of innovative financial instruments, broaden the financing channels, diversified financing, and other ways to raise more funds. At the same time, the state and the government should also create a favorable environment for the development of micro and small enterprises. Only in this way can small and micro enterprises get long-term development.